What's new on the 2011 Form 990?
Feb 9, 2012
The IRS recently released the new 2011 Form 990 and instructions. The instructions include several important changes for Form 990, which most tax exempt organizations file every year:
- An organization must complete Schedule F, Part 1 if it had foreign investments during the tax year valued at $100,000 or more.
- When an organization should complete Schedule F (Statement of Activities Outside the US), Part II or Part III, based on grants outside the US and inside the US for foreign activity, is clarified in the new instructions.
- The form's general instructions specify that a nonprofit organization should make reasonable efforts to obtain information from third parties needed to complete Form 990.
- Any organization required to file a Form 990, Form 990-EZ or 990-N (electronic notification e-postcard) must do so even if it hasn't yet filed an application for recognition of tax exemption of Form 1023 or Form 1024. If an organization delegated broad authority to an executive committee, the nonprofit must explain it in Schedule O (Supplemental Information to Form 990).
- The instructions no longer state that a director loses independence because he / she or a family member was a key employee of an entity that engaged in a business transaction that is reportable on Schedule L.
View Form 990 and the new instructions.
These are some of the more significant changes to Form 990's instructions. Form 990 has become more complex over the years as the public's scrutiny on nonprofits increases.
For more info
Contact us via email or 410.685.5512 if you have questions about Form 990 and how the instructions apply to your organization.
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